- Asian Stocks Rise With Tech Leading; Oil Declines: Markets Wrap
Shares in Asia climbed after another record high on Wall Street fueled by technology shares. Oil dropped as
concerns eased about Israel attacking Iranian energy facilities. MSCI’s Asia Pacific Index rose as much as 0.7%
on the back of gains in the chip sector. Taiwan Semiconductor Manufacturing Co. and SoftBank Group Corp.
were two of the biggest contributors to the benchmark’s advance. Japan’s Nikkei 225 Stock
Average Index climbed back up to reach the highest levels since July. Benchmarks in Australia and Taiwan
also advanced. - Dow adds 200 points for first close above 43,000; S&P 500 hits another all-time high
The S&P 500 and the Dow Jones Industrial Average rose to fresh records Monday as investors awaited the
next batch of key corporate earnings. The broad market index climbed 0.77% to 5,859.85, while the 30-stock
Dow advanced 201.36 points to 43,065.22. Both averages hit all-time highs and closed at records, with the
Dow ending the session above the 43,000 mark for the first time. The Nasdaq Composite added 0.87%,
closing at 18,502.69. McDonald’s, UnitedHealth Group and Apple led the Dow higher. Technology continued
its upward run and was the best-performing sector in the S&P. - Oil prices drop $2 on demand concerns, Israel comments
Oil prices slid $2 in early Asian trade on Tuesday as OPEC lowered its outlook for global oil demand growth in
2024 and 2025 and a media report that Israel is willing to strike Iranian military and not nuclear or oil targets.
Brent crude futures were down $2.11, or 2.7%, at $75.35 per barrel, while U.S. West Texas
Intermediate crude futures fell $2.07, or 2.8%, to $73.76 per barrel as of 0045 GMT. Both benchmarks had
settled about 2% lower on Monday. Israeli Prime Minister Benjamin Netanyahu told the U.S. that Israel is
willing to strike Iranian military targets and not nuclear or oil ones, the report said. - Gold edges lower as U.S. dollar rally curbs upside
Gold prices eased on Monday as broad economic stimulus measures in China, the biggest bullion consumer,
failed to invoke investor confidence and a U.S. dollar rally to two-month highs capped upside momentum.
Spot gold fell 0.2% to $2,650 per ounce, having hit its highest in over a week earlier in the session. U.S. gold
futures eased 0.3% to$2,667.50. The dollar rose to its highest since mid-August as investors digested China’s
weekend stimulus announcements, while the euro extended its fall ahead of a central bank meeting this
week. - China Moves to Tax the Ultra-Rich for Overseas Investment Gains
China has begun enforcing a long-overlooked tax on overseas investment gains by the country’s ultra-rich,
according to people familiar with the matter. Some wealthy individuals in major Chinese cities were told in
recent months to conduct self-assessments or summoned by tax authorities for meetings to evaluate
potential payments, including those in arrears from past years, said the people, asking not to be identified
discussing a private matter. - China’s exports and imports grew far less than expected in September
China’s exports grew by 2.4% in September from a year ago in U.S. dollar terms, while imports rose by 0.3%,
customs data showed Monday. Both figures were well below what analysts had expected, according to a
Reuters poll. Exports have otherwise been a bright spot in China’s economy, which has been weighed down
by lackluster consumer spending and a real estate slump. - Fed Governor Waller sees need for more caution ahead when lowering interest rates
Federal Reserve Governor Christopher Waller on Monday signaled that future interest rate cuts will be less
aggressive than the big move in September. Whatever happens in the near term, my baseline still calls for
reducing the policy rate gradually over the next year, he said. Key data points for the Fed have been mixed in
recent days. - China May Raise $846 Billion to Boost Growth, Caixin Reports
China may raise 6 trillion yuan ($846 billion) from ultra-long special government bonds over three years as
part of its efforts to boost the sputtering economy, Chinese media outlet Caixin reported. The funds will be
partly used to help local governments relieve their burden from off-balance-sheet debt, according to the
report late on Monday, citing unidentified people. - Singapore Blocks $1.7 Billion Allianz-Income Insurance Deal
The Singapore government will block a proposed S$2.2 billion ($1.7 billion) deal by Allianz SE to buy a
majority stake in a homegrown insurance firm, three months after the transaction sparked a public backlash.
The government decided it wouldn’t be “in the public interest” for the Income Insurance Ltd. deal to proceed
in its current form, Minister of Culture, Community and Youth Edwin Tong told parliament on Monday. The
city-state isn’t satisfied that Income can fulfill its social mission as a co-operative after the acquisition, he
added. - BlackRock, Fidelity snap up Hyundai India shares in record $3.3 billion IPO
Hyundai Motor India sold shares worth $989.4 million to institutional investors
including BlackRock and Fidelity on Monday, as the carmaker launched a $3.3 billion IPO that will be the
country’s largest share offering yet. The Government of Singapore and BlackRock together picked up stakes
worth a total of $77.3 million, while Fidelity bought shares worth $76.5 million. Domestic mutual funds were
allocated shares worth a total $340 million. The IPO shows continued enthusiasm for India’s capital markets,
with 260 companies having raised more than $9 billion so far in 2024, according to LSEG data. The year-todate volume has already surpassed the $7.42 billion total raised last year. Hyundai will not issue
new shares in the IPO, in which its South Korean parent will sell up to 17.5% of its stake in the wholly-owned
unit that will be valued at up to $19 billion. - Trump’s crypto coin goes on sale with Election Day just three weeks out
Donald Trump’s World Liberty Financial launches its token on Tuesday. In a Spaces event on X on Monday,
the project’s co-founders said that 100,000 customers had been whitelisted. World Liberty has been
described as a sort of crypto bank where customers will be encouraged to borrow, lend and invest in crypto. - Adidas shares rose 1.4% after both TD Cowen and UBS raised their price targets on the sportswear
company ahead of its third-quarter results on October 29
TD Cowen (hold): Analyst John Kernan says consensus estimates assume a near doubling of Ebit y/y in FY25,
which is a high bar. Notes momentum is evident across lifestyle and performance, with Terrace continuing to
resonate, while the performance product pipeline in running, basketball and soccer gain traction. Terrace
trend is resonating with consumers at a time when Nike is pulling back supply of its core classics; recent
innovations from Adidas are another hurdle to Nike regaining lost share. PT raised to €267 from €212. - Adobe unveiled artificial intelligence tools that can create and modify videos, joining Big Tech
companies and startups in trying to capitalize on demand for the emerging technology
One feature, integrated into Adobe’s video-editing software, Premiere, will let users extend video clips using
generative AI, the company announced Monday at its annual product conference. Other tools, available
online, will let users produce video from text prompts and existing images. While OpenAI, Meta Platforms
Inc. and Alphabet Inc.’s Google have shown off AI video generators, Adobe is the first big software company
to have it widely available for customers. Some startups, such as Runway AI, have already released
their video-generating products publicly. What we hear when we talk to our customers is it’s all really cool
but they can’t use it, Ely Greenfield, Adobe chief technology officer for digital media, said of the competitor’s
technology. Customers want AI features within applications they already use, Greenfield said. Adobe’s new
video models are designed for real work flows and integration into tools, he said. - The plane maker’s stock price fell 1.3% after announcing Friday afternoon that it plans to cut about 10%
of its workforce, or about 17,000 individuals
Boeing also said it postponed the delivery of its still-uncertified 777X wide-body plane and forecast a widerthan-expected loss for the third quarter as it continues to face losses amid an ongoing machinist strike.
Analysts are predicting that Boeing’s quarterly earnings update may pave the way for a big stock sale. The
planemaker has been considering selling new shares to replenish cash reserves that have been drawn down
as it contends with a crippling strike. With its credit rating hovering one step above junk-bond levels, such a
step could help fend off a costly downgrade. Barclays Plc analyst David Strauss said that new Chief Executive
Officer Kelly Ortberg could use the quarterly report and conference call, now scheduled for Oct. 23, to
prepare the market for a $15 billion equity sale. Bloomberg Intelligence analyst George Ferguson said he’s
expecting a $10 billion to $15 billion sale. - Nvidia closes at record as AI chipmaker’s market cap tops $3.4 trillion
Nvidia shares hit an all-time high as the chipmaker continues to ride a massive wave of demand for its
artificial intelligence chips. Companies including Microsoft, Meta, Google and Amazon are purchasing Nvidia’s
graphics processing units in massive quantities to build large clusters of computers for AI.
Nvidia is now worth more than $3.4 trillion.
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